Category: Trade Environment

South Sudan readies economy for Growth AMID Conflict

The symbols of South Sudan’s key challenges boom overhead every 15 minutes, briefly denying Juba residents the chance of sensible conversation, making paperwork on desks flutter and shake and dust rise on the streets. They are aircraft, commercial flights carrying businessmen and aid workers, and United Nations transport craft ferrying food and people to staunch the needs of more than a million made homeless and thousands killed since renewed internal conflict erupted in December 2013. Residents of Juba have become used to the noise but recognise that the aerial traffic encapsulates the dilemma facing the world’s newest nation as it tries to develop and tap its undoubted potential. “Peace. For South Sudan to really begin to grow, we need peace more than anything else,” says Caesar Riko, the policy and advocacy advisor of South Sudan Chamber of Commerce. “We can grow, even in conflict, but not the way we could if there was peace.” The world’s newest nation was born in July 2011 in jubilation after almost 30 years of war with the Khartoum government in the North but descended into internal conflict in December 2011 when President Salva Kiir accused his deputy, Riek Machar, of plotting to overthrow him. That simmering conflict shut down South Sudan’s key oil fields in the North of the country and has highlighted in cruel focus the need for the country to diversify away from 98% dependence on petroleum for the revenue with which to develop a country of around 12 million people. The...

South Sudan says no to goods dead on arrival

The biscuits came from Iran in modern, airtight packaging, the list of ingredients displayed on the back, an appetizing picture of the snack on the front. [caption id="attachment_6922" align="alignleft" width="500"] Jacob Matiop, South Sudan National Bureau of Standards head at Nimule, shows some of the expired imported goods impounded at the border.[/caption] The problem was that their expiry date was the week before they crossed the border from Uganda. They were inedible, potentially harmful for the consumer, and duly rejected by South Sudan’s embryonic National Bureau of Standards (SSNBS). “There was a whole consignment like this,” says Jacob Matiop, SSNBS head at Nimule, through which 90% of the nation’s goods arrive through the East African Community’s Northern Corridor from the Kenyan port of Mombasa. “So we seized them, and we will destroy them. The owners are upset but South Sudan will not let itself become a dumping ground for sub-standard or expired goods of any sort, and that means everything from biscuits to computers.” Matiop is young, determined and enthusiastic about establishing a system of standards of the sort that many EAC states already have or are, like his own country, building with help from TradeMark Africa (TMA) to protect consumers and streamline trade. “Of course traders get upset. They are not used to the idea of standards. One trader even pulled a pistol on one of my officers but we are protecting our young nation and our consumers. It is a duty.” Standards are a key part of the...

MINAGRI, RALIS and TMA support Rwanda’s honey exports to Europe

In order to achieve the Economic Development and Poverty Reduction Strategy (EDPRS2) and 2020 Vision’s objective to commercialize and diversify agriculture, the Government of Rwanda has been involved in promoting trade in different crops by creating a conducive environment to facilitate the export of these key agriculture products but also by ensuring Rwandan products get access to potentially lucrative foreign markets. Honey for export Previous reports on the honey sector have been for some time highlighting the export potential for Rwandan honey and other bee products. The quality of the Rwandan honey and wax was considered good and it was evident that it could meet the quality standards and specifications of foreign markets In this respect, honey was considered as one of the products to be promoted both regionally and internationally. In Rwanda, honey production has been considered for a long time as a past-time activity carried out by older men and in many respects has been neglected. Information on apiculture was scattered and most of what was available amongst various sector stakeholders were merely assumptions due to the lack of data and a well-defined monitoring and evaluation system. In the recent past, however, apiculture (the rearing of bees for commercial purposes), has been brought to the forefront, playing an increasingly significant role in transforming the lives of former gatherers of honey at a very small scale into farmers complying to national and international standards at every level in the production chain towards export. “Although the government puts in a...

Burundi tax success builds confidence, business image and hospital

A gleaming new hospital stands on a hillside in rural Burundi, a tribute to a tax system envied in many parts of Africa and the government’s commitment to home-grown development of one of the world’s poorest countries. “It was built entirely from our own resources,” says Dr Liboire Nigiri, Director General at the Ministry of Public Health. “Before long Burundians won’t have to go abroad for interventions and surgery. They will use their very own hospital.” The 150-bed Karusi referral hospital is the latest gleaming example of the way that the government of Burundi has turned around a corrupt and ineffective tax collection system to comply with the demands of East African Community (EAC) membership and modernise its public spending. The facility which was officially opened in mid-2014 boasts of a gleaming new ambulance parked outside the emergency area, new beds, mattresses, furniture and equipment, flowers budding along its tidy walkways and grass taking root in open areas. “This facility, paid for entirely from domestic funds, would never have been possible without the leadership of the government and the hard work and dedication of the OBR (Office Burundaise des Recettes – Burundi Revenue Authority) says OBR Commissioner General Dr. Domitien Ndihokubwayo.” Over the last four years, the government has moved closer to its target of funding its own spending 100% from its own tax and customs revenue. OBR has been supported by TradeMark Africa as part of its programme to help EAC governments and private sector institutions modernise and improve...

Burundi Bureau of Standards and Quality Control – Modernising Standards to Guarantee Quality and Safety

Slowly, but perceptibly, sediment forms out of a white substance and gathers at the bottom of a test tube in a small laboratory off the main road in Bujumbura. The sediment’s name is fraud. “What you are seeing is the analysis of a milk sample we took from a street vendor,” says laboratory assistant Benoit Glaud. “It’s been diluted with flour and with water, which is no surprise to us. Basically, Burundians are victims of massive fraud in foodstuffs. Glaud is a consultant working to modernize the tools and methods of the Burundi Bureau of Standards and Quality Control (BBN) to help exporters compete in the East African Community (EAC) market and to accustom producers and consumers to the idea that standards are not an extra tax but a guarantee of quality and safety. “Having the BBN stamp on your product is vital for the free movement of goods within the (East African) community,” says Damien Nakobedetse, BBN’s Director-General. “Without laboratory test results and the BBN stamp, it is very difficult to sell a product beyond the local market. Without certification, many countries will refuse imports or demand further analysis, which is expensive.” BBN has been around for two decades but its mission gained added urgency with membership of the EAC and the need for strict standards in the emerging single customs area the bloc is establishing. It was a case of standardize to survive. Across the community, TradeMark Africa (TMA) is helping national standards offices modernize, develop and introduce...

UNBS – On a Mission to Improve Standards

Mission of the Uganda National Bureau of Standards: “To provide standards, measurements and conformity assessment services for improved quality of life.” How much do you know about the quality of your television set? Or your washing powder? Even your toothpaste? You probably did some research before handing over the money for your TV, perhaps asking your friends, comparing costs, or even checking online. But did you bother to check that your washing powder actually does what the packet says it does, and won’t bring you out in a rash? As for your toothpaste, which you put in your mouth at least twice a day, how do you know it won’t poison you? In Uganda, the Uganda National Bureau of Standards (UNBS) is the organisation that ensures that consumer products meet current standards including safety. In 2010 the UNBS, with assistance from the Sweden International Development Cooperation Agency (SIDA) and TradeMark Africa (TMA) began a five year Quality Infrastructure and Standards Programme (QUISP)worth US$2.7 million, to establish and strengthen the standards development and implementation capacity of the country. The programme is designed to assist not just Ugandan producers, but also importers who suffer delays due to product testing. QUISP has five components: to put in place a national standards and quality strategy; to develop a legal framework for quality infrastructure;to coordinate the different players, especially regulators, standards developers and standards implementers; to build the capacity of the above players in terms of training and equipment; and to raise awareness of and...

Setting the East African Standards for Increased Trade and Prosperity

The five Partner States of the East African Community (EAC) are currently involved in activities related to the conformity of products traded within the region. The process which includes the preparation, approval and adoption of the standards related to those products is undertaken by the different national standards bodies in each one of the partner states. A common definition of a standard is a document approved by a recognized body that provides for common and repeated use rules, guidelines or characteristics for products or related processes and production methods, for which compliance may or may not be mandatory. Standards play an important role in regional integration. “Standards are vital to integration,” says José Maciel, Director of Non-Tariff Barriers (NTBs) and Standards at TradeMark Africa (TMA). “In addition to safeguarding the health and safety of the consumers and the environment, standards can cut the cost and time of doing business by huge amounts. In that sense, they are central to the future wealth of the EAC.” All across the five-nation regional economic bloc, TMA is helping national partners harmonize the standards of the most commonly traded goods in the region so that they can cross borders unimpeded by questions about their authenticity or reliability or origin. These include some of the most-traded goods in the EAC such as tea, coffee, iron, petroleum and edible fats and oils. TMA is assisting the EAC national bureaus of standards, the private sector and the EAC Secretariat on two levels: national and regional. At the...

Rwanda targets exceptional food safety standards to boost exports

Rwandan food producers are submitting themselves to the most stringent of global tests –good enough even for astronauts in space - to get a stamp of approval that will enhance their standing in world markets and help increase badly-needed exports. “This certification has increased consumer confidence and our confidence too,” says Dative Giramahoro, of Sosoma Ltd, which mills maize. “We sell in Kenya’s Nakumatt supermarket in Kigali, so now there is no reason why we cannot sell to any Nakumatt in Kenya,” she says. The certification is part of a programme overseen by the Rwandan Bureau of standards (RBS) to help the local food industry eat into the country’s 4-1 trade deficit with the rest of the world by increasing exports to the East African Community (EAC) and beyond. “There is no doubt that the certification we have received will help us increase exports and we see the European Union (EU) and Canada as primary targets, even the United States,” says, Anna Uwiganza, head of Kinazi Cassava Plant ltd. The standards are out of this world. They were pioneered by the U.S. Pilsbury Company, the U.S. army and the U.S. space programme NASA to guarantee the safety of any food that astronauts might consume in space. Called Hazard Analysis and Critical Control Points (HACCP), the system is a set of preventive analyses to prevent bacteria getting into the food chain at every point from harvests to packaging and is the most widely used food safety standard in the world today....

ECTS FOILS THEFT OF SOUTH SUDAN BOUND CARGO

The thefts were well planned; wait for the truck to get to a hill, open the doors and steal merchandise. However, the thieves did not know that the trucks were being monitored. No sooner had they tampered with the electronic seals than messages were sent to the central monitoring center (CMC) in Nakawa, Kampala. The incidents, according to Customs officer, Dunstan Luwaga, occurred last Wednesday and Thursday night. [caption id="attachment_3494" align="alignleft" width="624"] Kambali Kilondelo, a truck driver talks to the press at Nakawa[/caption] Whilst on duty, an officer in the CMC Wednesday night received an alert from a truck travelling on the Gulu highway, according to Luwaga. The driver, he said, was told to stop to ascertain what had happened. “When I walked to the back, the padlock was broken and the seal had been tampered with,” John Muteba the driver of the vehicle carrying merchandise stated. “I am so glad that the Electronic Cargo Tracking System (ECTS) helped me save the cargo. I would probably be in jail now.” He was headed to South Sudan. And on Thursday night, a similar incident happened between Matugga and Bombo on the same highway. Driving sugar to South Sudan, Kambali Kilondelo’s truck was vandalized.   [caption id="attachment_3495" align="alignleft" width="393"] John Muteba and his colleague stand outside their vehicle[/caption] Like Muteba, he was notified and he stopped. He walked to the back of the truck to the sight of 15 bags of sugar scattered on the road. The sugar, which had been grabbed...

Technology and partnerships assist the EAC to get things done

The East African Community (EAC), headquartered in Arusha Tanzania, is defined as the regional intergovernmental organisation of the Republics of Burundi, Kenya, Rwanda, the United Republic of Tanzania, and the Republic of Uganda. Heads of Partner States meet at a special summit twice a year when they give “general directions and impetus as to the development and achievement of the objectives of the Community” . However, the first item on the agenda of any EAC summit is to review past decisions by member states and monitor their implementation progress: have they been implemented, are they ongoing or has no action been taken? The obligation to review past decisions, as the first item on the agenda of every EAC Summit, was passed at the November 2013 Summit. That responsibility has now been made easier by the introduction of the East African Monitoring System (EAMS), a computerised system that records all decisions made since 2001 up to the present day and which focuses on those decisions that still need to be implemented – presented in dashboard format. Holding Partner States accountable The East African Community Secretariat, with support from TradeMark Africa (TMA) and GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit - Germany’s government-supported development agency),developed EAMS capture the progress of implementation of EAC Council of Ministers decisions, by Partner States. . This fosters accountability by the Partner States on the decisions they make. Delays in actioning decisions that have been agreed by all Partner States, such as removing non-tariff barriers, can be both...